What does the state of Michigan prohibit in franchise documents related to My Salon Suite?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the following provisions is void and unenforceable if contained in any documents relating to a franchise:
(a) A prohibition on your right to join an association offranchisees.
(b) A requirement that you assent to a release, assignment, novation, waiver, or estoppel which deprives you of rights and protections provided in this act.
This shall not preclude you, after entering into a Franchise Agreement, from settling all claims.
- (c) A provision that permits us to terminate a Franchise prior to the expiration of its term except for good cause.
Good cause shall include your failure to comply with any lawful provision of the Franchise Agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
- (d) A provision that permits us to refuse to renew your Franchise without fairly compensating you by repurchase or other means for the fair market value at the time of expiration of your inventory, supplies, equipment, fixtures, and furnishings.
Personalized materials which have no value to us, and inventory, supplies, equipment, fixtures, and furnishings not reasonably required in the conduct of the Franchise business are not subject to compensation.
This subsection applies only if: (i) the term of the Franchise is less than five (5) years; and (ii) you are prohibited by the Franchise Agreement or other agreement from continuing to conduct substantially the same business under another trademark, service mark, trade name, logotype, advertising, or other commercial symbol in the same area subsequent to the expiration of the Franchise or you do not receive at least six (6) months' advance notice of our intent not to renew the Franchise.
- (e) A provision that permits us to refuse to renew a Franchise on terms generally available to other franchisees of the same class or type under similar circumstances.
This section does not require a renewal provision.
- (f) A provision requiring that arbitration or litigation be conducted outside the State of Michigan.
This shall not preclude you from entering into an agreement, at the time of arbitration, to conduct arbitration at a location outside this state.
- (g) A provision which permits us to refuse to permit a transfer of ownership of a Franchise, except for good cause.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, Michigan law specifies several provisions that are considered void and unenforceable if included in any franchise-related documents. These prohibitions aim to protect franchisees' rights and ensure fair practices within the franchise relationship.
Specifically, the state prohibits clauses that restrict a franchisee's right to join a franchisee association. It also voids any requirements compelling a franchisee to assent to a release, assignment, novation, waiver, or estoppel that would deprive them of the rights and protections provided under Michigan's franchise regulations. Furthermore, My Salon Suite cannot include provisions allowing termination of the franchise before its term expiration without good cause, which includes failure to comply with the agreement after written notice and a reasonable cure period (not exceeding 30 days).
Michigan also prohibits My Salon Suite from refusing franchise renewal without fairly compensating the franchisee for the fair market value of their inventory, supplies, equipment, fixtures, and furnishings at the time of expiration, under certain conditions. These conditions include the franchise term being less than five years and restrictions on the franchisee's ability to conduct a similar business in the same area after expiration, or failing to provide at least six months' advance notice of non-renewal. The state also disallows provisions that permit refusal to renew a franchise on terms not generally available to other franchisees in similar circumstances, though it does not mandate a renewal provision. Finally, Michigan prohibits clauses requiring arbitration or litigation to occur outside of the state, and provisions that allow the franchisor to deny a transfer of ownership without good cause. These regulations collectively ensure a baseline of fairness and protection for My Salon Suite franchisees operating in Michigan.